Iron Ore Pellets Market 

Iron Ore Pellets Market Analysis and Forecast By Grade, Application, Source, Region, and Country, 2023–2023

Iron Ore Pellets Market Study: Increasing Global Demand Driven by Higher Steel Yield Using Iron Ore Pellets

Category: Chemicals & Materials Published Date : Sep-23 ID: CVC0154 Format: PDF Pages: 300

Iron Ore Pellets Market Outlook

As per rigorous research by ChemView Consulting, our analysts believe that the global iron ore pellets market will grow at a 3.2% CAGR during the period 2023–2033 to reach a valuation of US $73,735.1 million by 2033.

Key Findings on the Iron Ore Pellets Market

1. Which is the largest market for iron ore pellets?

The biggest market for iron ore pellets is East Asia. As per our analysis, East Asia holds nearly 36.9% share of the iron ore pellets market.

2. What is the largest grade segment within the iron ore pellets market?

As per ChemView Consulting, the largest segment by grade is BF grade. As per our analysis, this segment accounts for nearly 63.5% of total revenues.

3. At what rate is the iron ore pellets market expected to grow?

The iron ore pellets market is expected to grow at a CAGR of 3.2% during the period 2023–2033.

4. What are the major trends influencing the iron ore pellets market?

  • Infrastructure Development and Urbanization: Rapid infrastructure development and urbanisation in emerging economies are increasing demand for steel, thereby driving the demand for iron ore pellets.
  • Technological Adaptation: The use of automation and data analytics in the iron ore pellet manufacturing process can increase efficiency and lower costs, thereby contributing to market growth.

5. Who are the leading players in the iron ore pellets market?

The key companies in the iron ore pellets market are Fortescue Metals Group Limited, Rio Tinto, Brazilian miner Vale, Jindal SAW Ltd., Xindia Steels Ltd., Mitsubishi Corporation, Bahrain Steel, KIOCL, ArcelorMittal S.A., and Cleveland-Cliffs Inc.

Key Drivers for Iron Ore Pellets Demand

  • Iron ore pellet demand is closely related to steel demand. As the global demand for steel products grows, so does the demand for iron ore pellets.
  • In addition, the usage of iron ore pellets, which are more environmentally friendly than traditional iron ore, is forcing steel manufacturers to comply with strict environmental requirements. The shift towards cleaner production processes has the potential to accelerate market growth.
  • Moreover, continuous research and development in pelletizing technology has enhanced the quality and efficiency of iron ore pellets, making them more appealing to steel manufacturers.
  • Furthermore, the accessibility of high-quality iron ore as a raw material is a critical component of the iron ore pellets market’s growth. Access to abundant and high-quality iron ore materials is critical for consistent production.

Key Challenges Inhibiting Demand for Iron Ore Pellets

  • High energy consumption is an unavoidable drawback of pellet production. Energy price fluctuations, regulatory changes, and the shift to cleaner and more sustainable energy sources can all have an impact on operational expenses.
  • Moreover, inadequate transport infrastructure, such as trains, ports, and highways, may hinder the effective delivery of iron ore pellets from mining locations to steel production plants, resulting in delays and increased costs.

Key Challenges & Opportunities for Iron Ore Pellets Manufacturers

  • The iron and steel industry faces competition from alternative materials such as scrap metal and direct-reduced iron (DRI). If these products become more cost-effective or environmentally appealing, demand for iron ore pellets may fall.
  • However, government infrastructure initiatives and economic stimulus packages can enhance steel demand and create opportunities for iron ore pellet companies.

Country/Region-wise Insights

US Iron Ore Pellets Market Forecast

  • Rising demand for steel production, driven by infrastructure development and an expanding manufacturing sector in the US market, is projected to observe significant growth in the estimated period.
  • Additionally, the government’s emphasis on revitalizing and modernising existing infrastructure, along with anticipated investments in new projects, boosts demand for iron ore pellets even more.

Europe Iron Ore Pellets Market Outlook 

  • Robust infrastructure and technological improvements in the steel industry in the Europe market are anticipated to drive sales in the market over the assessment period.
  • In addition, the region’s commitment to becoming less dependent on imports and achieving self-sufficiency in the steel production sector is expected to lead to increasing investments and advances in the iron ore pellet manufacturing infrastructure.

Japan Iron Ore Pellets Market Forecast

  • Rising steel production demand as well as strategic collaborations and investments in the iron ore industry in the Japan market are anticipated to drive the market over the forecasted period.
  • In addition, Japan’s commitment to environmentally friendly and sustainable practises has resulted in a growing preference for iron ore pellets over traditional raw resources, increasing market growth.

China & India Iron Ore Pellets Market Forecast

  • The rapidly growing industrialization and urbanization in the China & India markets are anticipated to fuel the market over the forecast period. China & India iron ore pellets markets are likely to account for a leading share of the global iron ore pellets market.
  • Additionally, advances in iron ore pelletization technology, as well as an increased focus on quality and efficiency, are contributing to the market’s attractiveness.

Iron Ore Pellets Market Outlook & Forecast by Segmentation

By Grade

Based on grade, the BF grade segment is set to account for 63.5% of the iron ore pellet market share over the assessment period. The growth is mainly because blast furnaces have been the primary technique of steel production for many decades. In the steel industry, they are a well-established and commonly used technique. As a result, they continue to play an important role in iron and steel manufacturing.

Furthermore, blast furnaces are well-known for efficiently converting iron ore into molten iron, which can be further processed into steel. These furnaces can handle vast amounts of raw materials, making them cost-effective for mass steel manufacturing.

By Application

Based on application, the steel production segment is expected to remain at the forefront of iron ore pellets market share over the assessment period. The growth is mainly because steel is a crucial material in construction, automobile production, infrastructure development, and many other industries. The global demand for steel stays constant, which supports demand for iron ore pellets, which are a vital raw ingredient in steel manufacturing.

Furthermore, in order to meet the increased demand for iron ore pellets, numerous steel companies are investing in pellet production capacity. This expanded capacity provides a consistent supply of pellets for their own steelmaking operations and may allow them to sell excess pellets to other firms.

By Source 

Based on source, the magnetite segment is anticipated to remain at the forefront of iron ore pellets market share over the assessment period. The growth is mainly because magnetite ore has a higher iron content than other forms of iron ore, such as hematite. This increased iron concentration makes it an appealing choice for steelmakers since it can result in higher iron yields throughout the steelmaking process.

In addition, lower impurity levels in magnetite ore can help the environment. Reduced impurities mean less dangerous pollutant emissions throughout the pelletization and steelmaking processes, which is in accordance with stringent environmental standards.

Which Company Owns the Largest Share in the Iron Ore Pellets Market?

The key companies in the iron ore pellets market are Fortescue Metals Group Limited, Rio Tinto, Brazilian miner Vale, Jindal SAW Ltd., Xindia Steels Ltd., Mitsubishi Corporation, Bahrain Steel, KIOCL, ArcelorMittal S.A., and Cleveland-Cliffs Inc.

Recent Developments:

  • In August 2023, Bahrain Steel, a manufacturer and global supplier of high-quality iron ore pellets, announced the supply of iron ore pellets to Essar’s green steel plant in Saudi Arabia.
  • In March 2023, Brazilian miner Vale, a global mining company, announced that iron ore pellets were made on an industrial scale for the first time without the addition of coal, a significant step towards lowering the company’s carbon footprint.
  • In November 2022, KIOCL (Kudremukh Iron Ore Company Limited), a central public sector undertaking under the ownership of the Ministry of Steel, reopened its 3.5 million t/yr iron ore pellet factory in Mangalore.

As per our analysis, the companies that hold the largest share in the market are

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ArcelorMittal S.A.

Founded in 2006 and with headquarters in Luxembourg, it is a global steel manufacturing corporation.

Mitsubishi Corporation 

Founded in 1950 and with headquarters in Chiyoda City, Tokyo, Japan, it is the largest trading corporation in Japan and an affiliate of the Mitsubishi Keiretsu group.

Jindal SAW Ltd.

Founded in 1984 and with headquarters in India, it is a producer and supplier of iron and steel pipes as well as pellets.

Cleveland-Cliffs Inc. 

Founded in 1847 and with headquarters in Cleveland, Ohio, United States, it is the world’s largest producer of flat-rolled steel.

Fortescue Metals Group Limited

Founded in 2003 and with headquarters in Perth, Australia, it is the world’s fourth-largest producer of iron ore.

What Makes this Report More Insightful than Others?

With ChemView Consulting, we’re redefining market research for the next generation. Go beyond traditional analysis and immerse yourself in a holistic exploration of business opportunities. We offer:

Actionable Business Opportunity Assessments: Navigate the business landscape with precise, actionable insights tailored for future growth.

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1.1. Research Scope And Premise

1.2. Research Methodology

1.3. Market Estimation

2.1. Summary Snapshot, 2023 - 2033

4.1. Iron Ore Pellets Market Segmentation Analysis

4.2. Industrial Outlook

4.2.1. Market Indicators Analysis

4.2.2. Market Drivers Analysis

4.2.3. Market Restraints Analysis

4.3. Technological Insights

4.4. Regulatory Framework

4.5. Etop Analysis

4.6. Porter’s Five Forces Analysis

4.7. Price Trend Analysis

4.8. Customer Mapping

4.9. Global Recession Influence

5.1. Introduction / Key Findings

5.2. Historical Market Size Value (US$ Million) & Volume (Tons) Analysis By Grade, 2023-2033

5.3. Current and Future Market Size Value (US$ Million) & Volume (Tons) Analysis By Grade, 2023-2033

5.3.1. Direct Reduction (DR)

5.3.2. Blast Furnaces (BF)

5.4 Y-o-Y Growth Trends Analysis By Grade, 2023- 2033

5.5 Absolute $ Opportunity By Grade, 2023- 2033

6.1. Introduction / Key Findings

6.2. Historical Market Size Value (US$ Million) & Volume (Tons) Analysis By Application, 2023-2033

6.3. Current and Future Market Size Value (US$ Million) & Volume (Tons) Analysis By Application, 2023-2033

6.3.1. Iron-based Chemicals

6.3.2. Steel Production

6.4. Y-o-Y Growth Trends Analysis By Application, 2023- 2033

6.5. Absolute $ Opportunity By Application, 2023- 2033

7.1. Introduction / Key Findings

7.2. Historical Market Size Value (US$ Million) & Volume (Tons) Analysis By Source, 2023-2033

7.3. Current and Future Market Size Value (US$ Million) & Volume (Tons) Analysis By Source, 2023-2033

7.3.1. Magnetite

7.3.2. Hematite

7.3.3. Others

7.4. Y-o-Y Growth Trends Analysis By Source, 2023- 2033

7.5. Absolute $ Opportunity By Source, 2023- 2033

8.1. Introduction

8.2. Historical Market Size Value (US$ Million) & Volume (Tons) Analysis By Region, 2023-2033

8.3. Current and Future Market Size Value (US$ Million) & Volume (Tons) Analysis By Region, 2023-2033

8.3.1. North America

8.3.2. Latin America

8.3.3. Western Europe

8.3.4. Eastern Europe

8.3.5. South Asia and Pacific

8.3.6. East Asia

8.3.7. Middle East and Africa

8.4. Market Attractiveness Analysis By Region

9.1. Market Revenue Share By Manufacturers

9.2. Manufacturing Cost Breakdown Analysis

9.3. Mergers & Acquisitions

9.4. Market Positioning

9.5. Strategy Benchmarking

9.6. Vendor Landscape

10.1. Fortescue Metals Group Limited

10.1.1 Company Overview

10.1.2 Financial Performance

10.1.3 Technology Insights

10.1.4 Strategic Initiatives

10.2. Rio Tinto

10.2.1 Company Overview

10.2.2 Financial Performance

10.2.3 Technology Insights

10.2.4 Strategic Initiatives

10.3. Brazilian miner Vale

10.3.1 Company Overview

10.3.2 Financial Performance

10.3.3 Technology Insights

10.3.4 Strategic Initiatives

10.4. Jindal SAW Ltd.

10.4.1 Company Overview

10.4.2 Financial Performance

10.4.3 Technology Insights

10.4.4 Strategic Initiatives

10.5. Xindia Steels Ltd.

10.5.1 Company Overview

10.5.2 Financial Performance

10.5.3 Technology Insights

10.5.4 Strategic Initiatives

10.6. Mitsubishi Corporation

10.6.1 Company Overview

10.6.2 Financial Performance

10.6.3 Technology Insights

10.6.4 Strategic Initiatives

10.7. Bahrain Steel

10.7.1 Company Overview

10.7.2 Financial Performance

10.7.3 Technology Insights

10.7.4 Strategic Initiatives

10.8. KIOCL

10.8.1 Company Overview

10.8.2 Financial Performance

10.8.3 Technology Insights

10.8.4 Strategic Initiatives

10.9. ArcelorMittal S.A.

10.9.1 Company Overview

10.9.2 Financial Performance

10.9.3 Technology Insights

10.9.4 Strategic Initiatives

10.10. Cleveland-Cliffs Inc.

10.10.1 Company Overview

10.10.2 Financial Performance

10.10.3 Technology Insights

10.10.4 Strategic Initiatives